The Premature Demise of the Trust-Based Estate Plan

Due to the High Federal Estate Tax Exemption amount and Portability, many estate attorneys, CPAs, and Financial Advisors have abandoned Trust based estate planning. Although many people are no longer subject to the federal estate tax, there are numerous other reasons to consider implementing a Trust-based estate plan. These include avoiding probate, continuity of asset management, distribution control, creditor and divorce protection, spendthrift protection, protection from future estate taxes, utilizing a state exemption, multiple marriages, protection from multiple death taxation, estate tax free asset growth, GST exemption protection, future probate avoidance, special needs protection for government benefits, pet care, business incubation, loss of the DSUE, and protection from a future exemption decrease. 

This session will explore the advantages and applications of trust-based estate planning by reinforcing the importance of considering trusts even when estate taxes are not a primary concern and providing examples of real-life scenarios where trust-based plans have provided long-term financial protection and flexibility.

Learning Objectives:

• Analyze the various benefits of trust-based estate planning.
• Identify the legal safeguards provided by trusts and how they control asset distribution.
• Apply trust-based solutions to specialized situations, such as special needs protection, business incubation, and pet care.